IAG joins Foxtel and KFC in questions over whether Mediacom overcharged advertisers
IAG insurance has joined the list of advertisers asking questions of whether their media agency Mediacom overcharged for TV advertising bought on their behalf
The insurance company, which has brands including NRMA and SIO, is the third to confirm it is examining whether the TV audience numbers reported to it by Australia’s second largest media agency were inflated.
Mediacom spends a reported $30m on behalf of IAG. On Friday Foxtel and Yum Restaurants, whose brands include KFC and Pizza Hut, both confirmed they believed they had been given inflated claims on the TV audiences Mediacom had delivered.
Mediacom has brought in auditors Ernst and Young to carry out an independent audit of its procedures. Mediacom has insisted that the problems are limited to a small number of clients serviced from its Sydney office.
Shouldn’t this be raised with NASDAQ as Mediacom is part owned by GroupM which is owned by WPP plc which is listed on the NASDAQ stock exchanged?
Surely this will have effect on their billings thus will have a impacted on WPP billings no?
Thoughts?
They haven’t ‘overcharged’. If a schedule of spots delivers less TARPs than expected, the networks don’t charge any less.
Before we rush to judgement – why don’t we all wait for the audit.
#rategate
@101 -size of Mediacom Australia is very very small compared to WPP. ROUNDUNG ERROR in overall accounts
Considering wandering about in North Sydney with an EY clip board. See who looks shifty.
I purchased a KFC family meal last night in Punchbowl. After dinner my wife noticed we’d only received 20 of the promised 21 tender pieces of the Colonels original recipe chicken.
I don’t know who these Mediacom people are, but if I order 21 pieces of the Colonel’s tender, mouth watering chicken, I expect to find 21 golden pieces in my bucket. Now I’m left wondering if they used only 10 of the 11 secret herbs and spices? It’s secrecy like this that adds to my suspicions.
It’s time these people wake up and smell the chicken!
Time for a Royal Commission
…..and meantime the queue for the Mediacom toilet grows as management at other similar companies think ‘there but for the grace of God go I’. How lucky do you feel, is this a wave or a tide?
@Long time reader a ‘glass half full’ approach might see you grateful that you only got 20 pieces of the Colonel’s intensively raised fat laden chicken but I guess, in a perverse way, you were cheated. At least once.
@Long time reader.. like your style
State service for the TARPs that never got a fair chance I say